MGMT360 Test 2

Some common characteristics of an effective negotiator

- Able to say no effectively - Integrity - Plan effectively and conduct research necessary to become thoroughly knowledgeable about bargaining issues and trends - Discern the bottom-line interests of other parties - Even-tempered - Excellent communicator - Self-confident and pragmatic - Good physical and mental stamina - Understands the short- and long-term implications of specific bargaining proposals on the parties' interests - Understands the importance of face saving and is willing to provide opportunities to the other party to do so - Willing to take calculated risks - Knows how and when to ask relevant questions and interpret the other party's responses - Has a sense of humor to relieve stress or establish rapport with the other party - Laughs with the other party, never at the other party

Rules governing union officer elections (U.S. Department of Labor):

- All local unions must elect officers at least once every 3 years, national/international unions every 5 years. - Local unions are required to have direct elections by manual or mail ballot; national/international unions are permitted to elect officers by delegates. - Proper safeguards must be prepared for mail ballots, for example, insurance that all members received a ballot and have sufficient time to vote and return the ballot. - The location, date and time of the election must be convenient for all of the members. - Notice of the election—which contains the date, time, place and so on—must be mailed to every member 15 days prior to the election. - There must be reasonable notice of the rules governing nominations mailed to or posted for the membership. - Requirements for voter eligibility are the same as the requirements for membership. Voter eligibility must be verified. - After the ballot is marked, it should be placed in a nearby ballot box by the voter, and the voter should leave the area by a door different from the entrance of members who have not voted. - Neutral persons should conduct the elections and count the ballots. - Observers are a necessary part of the election process, and each candidate is entitled to 1 or more observers. - Each candidate has a right to have campaign materials mailed. Some unions do the mailing at the candidate's expense; some unions provide computer printouts of the membership lists or mailing labels of membership addresses. - The use of union or employer funds to support a candidate is prohibited.

Union security provisions:

- Can increase union membership in the bargaining unit (e.g., union shop—ensures dues-paying members) - Provide a certified bargaining opponent with which the employer can negotiate (i.e., majority status) - Strengthen union resources (e.g., dues check-off) - Strengthen the union in its ongoing relationship with the employer (e.g., formalized grievance process) - Strengthen the union's ability to represent the bargaining unit in collective bargaining by focusing on issues important to the membership

Union Substitution (Nonunion strategy)

- Company paternalism - Company-sponsored employee organization - Forms of employee participation and involvement

The roles of unions organizers:

- Educator: union benefits/protections, labor traditions - Persuader: encourage voting for unionization - Supporter: support workers' collective actions

Factors that affect the costs of a union to agree or disagree with proposed agreement include:

- Financial supplements—Strike pay and other outside compensation earned/received by strikers - Public aid—Can the workers receive welfare payments, food stamps, unemployment compensation or aid from charitable organizations?

Before a union is formed, management can take advantage of the situation by:

- Having full access to its employees - Offering the possibility of improvements without additional cost of unionization for employees - Benefiting from employees' fear of change

Common ways for local union members to participate include:

- Holding an elected office - Participating in meetings - Voting (elections, ratifications, and strikes) - Attending conventions - Helping with the newsletter

The basis for a company's strategy in labor relations is dependent on:

- Managerial philosophy - Managerial ethics - Economic conditions (overall and industry-specific) - Workforce composition - Competition in the industry - Stage in company/industry life cycle - Managerial capabilities

Codified Businesslike (Union strategy)

- Neutral in union campaign - Straight-forward approach

Union Avoidance (Nonunion strategy)

- Positive human resources management: Some companies want to avoid unions but recognize the importance of employee involvement in decisions - Double-breasting: This may occur when a holding company controls both facilities, a unionized firm acquires a nonunionized subsidiary, or a nonunionized firm acquires a unionized subsidiary.

The following are factors that affect bargaining power:

- Prevailing economic conditions (including unemployment rate, labor supply and sales volumes) - The bargaining parties—Is there goodwill between the parties? What is the public image of each party? - Governmental interventions—Typically governmental interventions occur in the airline/railroad industries. Government interventions could also weaken management/union power.

Issues involved in collective bargaining for professional values include:

- Professional standards - Participation in policy making - Regulation of professional work (credentialing) - Training and professional development - Commitment of organizational resources to professional goals - Criteria for personnel decisions regarding professionals

CTW committed to a growth agenda based on organizing using the following strategies:

- Reallocate 75% of the CTW budget from other union activities to recruitment/organizing - Rebate 50% of union affiliates' dues if they adopt aggressive organizing campaigns and create a strategic center targeting anti-union employers - Target organizing activity only in industries that will primarily remain in the U.S. (particularly health care, hospitality, retail, transportation, and construction) - Hold joint campaigns to recruit new members - Build global partnership with unions in other countries in support of organizing multinational corporations - Cooperate with the AFL-CIO in national election campaigns while also operating field offices in several states to elect labor-friendly officials supportive of organizing

Effective Use of HR (Common Interests)

- The company wants to effectively use human resources. - The union wants the company to effectively use human resources within the rules and policies of the agreement and to achieve job security and employment opportunities for members. - The company wants to attract, retain and motivate employees. - The union wants the company to attract, retain and motivate employees within the rules and policies of the agreement.

Profitability (Common Interests)

- The company wants to grow and prosper. - The union wants the company, as well as the union, to grow and prosper. - The company wants to achieve a favorable return on its investment. - The union wants the company to achieve a favorable return on its investment and return "fair" wages to employees.

Rights (Common Interests)

- The company wants to protect management's rights to make decisions and retain flexibility. - The union wants to protect union and employee rights that were negotiated and included in the labor agreement. - The company wants to obtain a commitment from the union that there will be no strike for the duration of the agreement. - The union wants to obtain a commitment from the company that there will be no lockout for the duration of the agreement.

Survival & Competitiveness (Common Interests)

- The company wants to survive and remain competitive. - The union wants the company to survive and remain competitive as well as for the union to survive and remain secure.

A bankrupt firm can abandon (or seek modification of) the terms of a labor contract if:

- The firm seeks to make a fact-based proposal to the union to modify the contract - Modification is necessary to reorganize the firm and treats all parties fairly - The firm provides relevant information to the union - The firm bargains in good faith over the modification - The union rejects the modification without good cause - The balance of equities in the case favor modification of the contract

Reasons for mergers of national unions:

- The need for stronger bargaining positions - Expensive jurisdictional disputes - Decline in U.S. industrial sectors - Economies of scale - Avoidance of external controls - The need for self-preservation

Union Suppression (Nonunion strategy)

- Union busting - Illegal acts - Refusal to bargain - Decertification

Accommodation or Labor-Management Cooperation (Union strategy)

- Union involvement - Employee empowerment

Components of ''rank-and-file intensive strategy'' that are associated with higher union win rates

- Use of representative committees to be more in touch with concerns of the bargaining unit as a whole, to have better access to employees at the workplace, and to demonstrate to the employees that the union is a democratic and inclusive organization - Person-to-person contact, house calls, and small-group meetings - Conducting union bargaining surveys, selection of the bargaining committee, and working with rank and file to develop proposals before an election - Focus on issues, such as dignity, justice, discrimination, fairness, or service quality - Serious commitment of staff and financial resources to organizing, involvement of the international union in local campaigns, and training, recruitment, and effective utilization of rank-and-file volunteers from already-organized bargaining units - Use of solidarity days (designated days to wear union buttons, hats, T-shirts, arm bands, etc.).

New union strategies:

- Using the Internet to distribute organizing information - Salting: employers hire organizers who then solicit for union membership as employees - Open source unionism—doesn't depend on union proving majority support or negotiating a CBA - Organizing an employer's suppliers to overcome the effects of outsourcing - Creating videos explaining the union's position - Holding public rallies and marches to draw attention to union causes - Funding more organizing efforts

The bargaining structure has two dimensions:

1. Employee groups with preferences that affect the bargaining outcome 2. Employees and employers affected by the bargaining outcome

A typical union's strategic plan will include:

1. Mission statement 2. Analysis of the external environment 3. Internal analysis of union strengths and weaknesses 4. Long-term and short-term objectives 5. Strategy development for growth and survival

The collective bargaining process:

1. Preparation: Choosing a negotiation team and representatives of both the union and employer. Both parties should be skilled in negotiation and labor laws, and both examine available information to determine whether they have a strong standing for negotiation. 2. Discussion: Both parties meet to set ground rules for the collective bargaining negotiation process. 3. Proposal: Both representatives make opening statements, outlining options and possible solutions to the issue at hand. 4. Bargaining: Following proposals, the parties discuss potential compromises, bargaining to create an agreement that is acceptable to both parties. This becomes a "draft" agreement, which is not legally binding, but a stepping stone to coming to a final collective bargaining agreement. 5. Final Agreement: Once an agreement is made between the parties, it must be put in writing, signed by the parties, and put into effect.

The Employee Free Choice Act contained three major provisions:

1. The act required NLRB to certify a union if a majority of employees signed union authorization cards. 2. If collective bargaining fails, a first contract, subject to binding arbitration, is required to be in effect for 2 years. 3. Penalties were increased for unfair labor practices committed by the employer during the union organizing campaign or the negotiation of the first contract.

The Landrum-Griffin Act, also known as the Labor-Management Reporting and Disclosure Act (LMRDA)

1959, came about as a result of the McClellan hearings, which exposed abuses of power in unions. These abuses included corruption, racketeering, and embezzlement.

Amalgamation merger

2 or more unions of roughly the same size form a new union (e.g., the AFL and CIO merger)

Local Union

A branch of the national/international union, from which it receives its charter, constitution, bylaws, and rules. The constitution identifies the number and types of officers, their duties, and responsibilities.

Collective Bargaining

A continuing interdependent relationship that involves the exchange of commitments to resolve conflicts of interest by reaching agreements acceptable to both labor and management.

Appropriate Bargaining Unit

A grouping of jobs/positions where employment interests and conditions are commonly shared by the employees holding those positions (commonly called "community of interest").

Long-Form Management Rights Clause

A more specific, detailed list of subjects over which management intended to reserve the unilateral right to control

Absorption merger

A small union merges with a larger union and loses its previous identity

Union Shop

A union shop is the most common form of a union security clause. A union shop contract provision means that all employees are required to become union members once employed to remain employed.

Union

Also known as the exclusive bargaining agent for employees, represents the bargaining unit members

Unionized companies tend to adopt one of two strategies in labor relations: a businesslike, codified strategy or

An accommodation and labor-management cooperation strategy

Rights Dispute

An alleged violation of the collective bargaining agreement

Excelsior Rule

An employer must provide the NLRB regional director with the names, phone numbers, email and mailing addresses of eligible voters within 2 days of a consent or directed election order. If a company refuses to comply, it would be considered an act of bad faith and cause the election to be set aside. This would cause the NLRB to take alternative actions to obtain the requested employee information (e.g., subpoena).

Whipsaw Bargaining Strategy

An employer or union uses the terms of an agreement with one bargaining unit/employer as leverage in negotiating with other bargaining units/employers.

Intermediate organizational units

Appear between the national/international and local unions in the overall organizational structure.

"Free Riders"

Are those who do not join the union or pay dues for union representation and collective bargaining. The unions are mandated by law to represent them anyway.

Which of the following is NOT an NLRB remedial order in unfair-labor-practice cases?

Awarding punitive damages to employees affected by ULPs

Costing Contract Proposals

Because it will have to pay for the terms of the labor contract, management needs to estimate the cost of contract terms throughout the negotiation process and the life of the contract. The union also needs to estimate the value of management's proposals.

Choose the strategy that nonunion companies DO NOT generally use to maintain a nonunion status:

Businesslike, codified strategy

Which of the following is a general costing approach used by management during the negotiation process?

Calculation of cents-per-hour wage increase and its effect on associated time-based benefits

Unilateral Changes in Conditions

Changing the terms of a mandatory employment issue (e.g., wages and benefits) before bargaining it to impasse

Closed Shop

Closed shops were outlawed by the LMRA Act in 1947. Before that time a closed shop required that potential employees had to be union members before they could be hired.

Non-Mandatory (or permissive) Subject of Bargaining

Combining bargaining units in the centralized negotiation of a single labor agreement

Commission of Unfair Labor Practices

Committing ULPs to discourage union support or taking actions that affect large segments of the bargaining unit

Craft unions

Composed of members who possess skills for which an extended period of time is required for the individual to become proficient in performing the work independently.

Which of the following is an illegal union suppression measure?

Developing a spy network to identify union supporters & Having questions on applications that ask applicants about prior union membership

Good-Faith Bargaining

Each party must demonstrate a sincere and honest intent to reach a labor agreement and be reasonable in their bargaining positions, tactics, and activities.

The suggested minimum size of the negotiation team is 20 members.

False

Attitudinal Structuring

Focuses on the emotional context of the negotiations promoting harmony and cooperation. Each party is sensitive to the other's needs.

Surface Bargaining

Going through the motions of bargaining without the sincere desire to reach an agreement

Consent Election

Held if both sides agree on all election issues

Agency Shop

In an agency shop, union membership is optional but nonmembers must pay for union collective bargaining and grievance costs (financial core). Agency shops are commonly found in public-sector labor agreements.

Wheeler Model of Union Formation

In the first stage, an individual worker is ready to take aggressive action to express anger at the employer. In the second stage, the individuals form a group and decide to take collective action.

Withdrawal from Multiemployer Bargaining Group

In this agreement an employer cannot withdraw from bargaining without the union's consent once bargaining has commenced. In this situation, the employer wishing to exit the multi-employer agreement must provide both the union and other employers advance notice, prior to the contract expiration date.

Distributive Bargaining

In this approach the parties are seen as being in conflict and the negotiation process is a win-lose (zero-sum) exercise in which one party must lose something in order for the other party to win. Each party relies on its bargaining power to come as close as possible to the other party's resistance point.

Integrative Bargaining

In this approach, negotiators see bargaining as a mutual problem-solving exercise with open communication. Both bargaining parties seek to satisfy each party's substantive interest while strengthening their relationship. The effect of bargaining power is reduced by advance agreement on how bargaining proposals will be evaluated.

Boulwarism

In this bargaining strategy, one party refuses to consider any modification of its original bargaining proposal unless, in its view, the other party offers significant facts to the contrary in rebuttal. Boulwarism is an example of a violation of good-faith bargaining.

Mandatory Bargaining Subjects

Include issues that directly affect the bargaining unit members' wages, hours, terms, and conditions of employment. These are issues that can be bargained to impasse. (Impasse is when neither party will agree to a change of position on the issue.)

Illegal Bargaining Subjects

Include proposals which violate the law and, if in a contract, are unenforceable

Directed Election

Includes the regional director's decision on disputed issues

The Union's goal in the negotiation process:

Increasing wages and benefits, ensuring job security for the members and securing a union shop clause in the collective-bargaining agreement. The union's objectives include maintaining a desired employment level, having the ability to sustain a strike, enhancing membership satisfaction and helping members to have realistic expectations regarding the negotiation process. So the union comes to the negotiation table Initially Offering or asking for much more than it is willing to settle for regarding the subjects being bargained over. Of course the union has a Target in mind that falls within a predetermined Bargaining Agreement Range preferably closer to its Initial Offer. However, there is a Resistance Point below which there is No Settlement for the negotiated subject.

Ratification

Indicates the union members' approval of, but not necessarily satisfaction with, contract provisions.

Effects Bargaining

Management must also bargain over business decisions that involve fundamental change in the nature, scope or direction of the firm.

Reserved Rights Doctrine

Management retains all rights except those rights restricted by terms of its labor agreement with labor.

Managerial rights are considered a:

Mandatory bargaining subject

Issues that directly affect the bargaining unit members' wages, hours, terms and conditions of employment are considered:

Mandatory bargaining subjects

Mid-Term Bargaining

May occur when either party voluntarily agrees to negotiate a current contract provision early. Mid-term bargaining may also come about when a mandatory subject surfaces that was not previously negotiated on.

The American Federation of Labor and the Congress of Industrial Organizations (AFL-CIO)

Merged in 1955, The AFL-CIO is composed of 56 national/international unions with 60,000 local unions. Representing about 10 million individual members, the AFL-CIO has negotiated about 150,000 labor agreements.

Captive Audience—24 Hour Rule

NLRB rules specify that employers cannot make speeches to workers on company time within 24 hours of an election and may not threaten reprisal or promise benefits during a campaign speech.

Which of the following is NOT part of the bargaining range?

Negotiation Team selection

Intraorganizational Bargaining

Negotiations that occur within each bargaining party as negotiators attempt to achieve consensus within their respective parties.

National and International Unions

Occupies the most influential position as it relates to collective bargaining. The size alone indicates the magnitude of the national/international union's influence.

Decertification

Occurs when a majority of the bargaining unit votes to remove the union's certification as the unit's exclusive representative. The support of 30% of the unit is required to petition the NLRB for a decertification election.

Pattern Bargaining

Occurs when union or management negotiators attempt to extend the terms of a negotiated settlement (lead contract) from an employer to similar employers. This strategy eliminates wage competition among employers and increases perceptions of union equity and solidarity.

Union Certification

Once certified by the National Labor Relations Board (NLRB), a union has the exclusive right of representation for one year (meaning that a union has time to negotiate a labor agreement with an employer without worrying about being replaced by another union).

Alienation Theory

One theory of why employees are motivated to form or vote for a union is that employees may want to relieve their feelings of alienation through collective action.

Double-breasting is when a company:

Operates both unionized and nonunionized subsidiaries

Industrial-union members

Organized based on the industry they work in. The skills required to do the work are more easily acquired.

Independent (Unaffiliated) Unions

Over 41 national/international unions exist in the U.S. that are not affiliated with the AFL-CIO or the Change to Win federations.

Dilatory Tactics

Procrastinating, unreasonable delay, avoiding meetings, and other evasive actions that impede the progress of bargaining

Objective evidence

Reasonable grounds to believe that an incumbent union no longer represents a majority of the bargaining-unit employees. An example of objective evidence is: unsolicited communications from employees stating a desire to become unrepresented

Management's goal in the negotiation process:

Reducing labor cost, increasing flexibility in making operational decisions and ensuring an environment in which the corporate objectives of increased profitability and productivity are realized. So, management comes to the negotiation table Initially Offering much less than it is willing to give for the subjects being bargained over. Of course, management has a Target in mind that falls within a predetermined Bargaining Agreement Range preferably closer to its Initial Offer. However, there is a Resistance Point beyond which there is No Settlement for the negotiated subject.

Management

Represents the interest of the stockholders and owners

Lock-In Agreement between unions with single employer

Requires each union-represented bargaining unit covered by an agreement to withhold final settlement until all involved unions are willing to settle. This strategy was ruled unlawful by the NLRB.

Successorship Clause

Requires the current owners to obligate subsequent owners to continue the labor contract upon assumption of ownership. 28% of contracts have a successorship clause.

Effective "Right-to-Work" Laws

Right-to-work states generally have much lower union densities than non-right-to-work states.

Scarcity Consciousness Theory

Some employees are attracted to unions because they believe jobs are difficult to obtain and retain. They believe a union will help them keep their jobs.

Contingency Union Shop

Some states are right-to-work states, which means that union shops are not permitted. A contingency union shop is one in which the labor agreement includes a union security provision making the operation a union shop if the state's right-to-work laws are eliminated.

Employee Associations

Sometimes referred to as "watered-down unions," employee associations provide various services, including toll-free hotlines and classes on sexual harassment, carpal tunnel syndrome injuries, GED, and English.

Imposing Unreasonable Conditions

Stipulating overly restrictive measures that interfere with the process of bargaining

A __________ clause in the labor contract requires the present owners to obligate subsequent owners to continue the labor contract upon assumption of ownership.

Successorship

Totality of Conduct Doctrine

The NLRB considers isolated incidents within the entire context of conduct during a campaign in determining unfair labor practices. Further, the NLRB will no longer investigate the truth or falsity of each party's campaign statement (because voters are sophisticated enough to analyze campaign material). However, the NLRB will intervene if campaigning parties use forged documents (which would then make it difficult for voters to determine if the material is propaganda).

NLRB Directive method

The NLRB directs the employer to recognize the union because the employer's unfair labor practices tainted the organizing campaign and/or election processes. The NLRB's discretionary authority to direct employers to recognize unions is often termed "Gissel orders," after the U.S. Supreme Court Case NLRB v. Gissel Packing Co., Inc. (1965).

Contested Election

The NLRB holds a hearing to resolve election issue differences between the 2 parties

Short-Form Management Rights Clause

The broad language of management's right to complete discretion in those matters not specifically included in the labor agreement

Election outcomes:

The decision is based on a simple majority. Those who vote decide for everyone in the bargaining unit. Winning outcome is made up of 50% +1 of the votes. Runoffs are held if necessary. Election conduct and votes can be challenged for 7 days. The challenge may allege misconduct or that someone shouldn't have voted because he/she was ineligible.

Voluntary Recognition method

The employer voluntarily recognizes the union and pledges to remain neutral and not to oppose or interfere with the organization campaign. The employer agrees to a "card check" for union majority status, allowing the union to forgo the NLRB (National Labor Relations Board) representation election process.

Union Hiring Hall

The union hiring hall provision requires employers to hire only employees referred by the union if the union can supply enough qualified workers. The union hall is required to refer both union members and nonmembers in a nondiscriminatory manner.

Exclusive Bargaining Agent

The union is to represent equitably and fairly all members of the bargaining unit regardless of their union membership (including "free riders") and bargain in good faith with the employer.

Untimely Petitions (Election Bar Doctrine)

There are several rules that make a petition for election untimely. For example, if a representation election was held within the previous 12 months, the petition is deemed untimely. Moreover, if the employees are already in a certified union and covered by a contract, the petition is prohibited.

Voluntary (non-mandatory or permissive) Bargaining Subjects

These are items that do not directly affect terms and conditions of employment.

Managerial and Professional Organizations

These organizations often serve people in managerial/professional positions who are not allowed to join unions.

Contract Bar Doctrine

This NLRB rule specifies that a valid multiyear contract protects the union by barring representation elections for up to 3 years.

Dues Checkoff

This clause allows employees to have union dues automatically deducted from their paychecks by the employer. The employee must sign a document authorizing this deduction, and management collects a minor administrative fee for processing the transaction.

Leapfrogging

This strategy attempts to use the most recent contracts in the industry as the starting point for extracting further concessions.

When the NLRB and courts evaluate the intent of specific bargaining actions by looking at the patterns of conduct throughout the negotiation, they are using:

Totality of conduct doctrine

Conflicting Interests

UNION: Participation Job security "Fair" wages Protected rights No lockouts MANAGEMENT Control Efficiency Effectiveness Flexibility No strikes

Which of the following is NOT considered an unfair labor practice in bargaining?

Wear down the other party's resistance or concentration by having marathon bargaining sessions

Interest Dispute

When the union and management disagree over terms and conditions of employment

Preferential Treatment Clause

With this provision, union employees are given employment preference over nonemployees if a new facility is opened. This provision was negotiated between the UAW and General Motors when a new Saturn manufacturing plant was opened ("Saturn-UAW Agreement Is Upheld").